KEY CONSIDERATIONS BEFORE PAYING A DEPOSIT ON A NEW CAR

When buying either a new or used vehicle, it is commonplace for retailers to ask for an initial payment - usually a percentage of the overall sale price. This gives a business the reassurance that a consumer has the intention to purchase the vehicle, whilst also providing the seller with a way to recover costs should the sale not go ahead for any reason. The value of the deposit is then often deducted from the overall purchase price, with the remaining amount paid over time via a finance agreement, or settled in full, if the consumer chooses to purchase the vehicle outright from the start of ownership.

Consumers need to be aware of the following key factors when it comes to putting down a deposit, to help avoid the chance of a dispute occurring later on down the line. Determine whether you can afford the deposit and ownership costs A car is a significant purchase for many, meaning a deposit may be a few thousand pounds - often the first amount that is due at the beginning of the vehicle purchase process. Therefore, as part of the research phase, prior to putting any money down, it is worth doing an 'affordability health check' at this stage to determine whether the sum r...